Commission-Free Investing: What It Means, Why You Should Care.

I started my investing journey in the summer of 2008. I found an online broker that allowed me the freedom to buy and sell stocks on my own. I started building a portfolio of companies I knew, loved, and had researched for investing purposes.

The first online broker I signed up for charged a $4.95 commission fee per trade. 

At the time, and for the past 11 years, I didn’t really mind the fee for the following reasons:

#1. I am not a trader. I am an investor. That means I am very strategic about what I buy and when I sell.

When I buy a stock, I hold on to it for many years. Unless my core thesis for making the investment has changed in any way, I tend to hold on for the very long term. And so, I wasn’t constantly paying that fee.

#2. In the grand scheme of things, if I made good investment decisions where my profits were hundreds or thousands of dollars, paying a fee of $4.95 to sell became irrelevant. To me, it was a fair transaction.

When the world started changing and commission-free investing apps started to enter the picture, I was still not very impressed and remained loyal to my online broker. I found most apps too “basic” and most don’t offer as many of the features and resources that a full-fledged online broker offer. 

Well, things have changed yet again and I can say that NOW I am VERY excited! 

Why? Well, because my favorite type of investment platforms (online brokers) are joining the commission-free bandwagon which means investing is now more accessible than ever. 

*Me celebrating when I found out my broker eliminated fees. LOL*

For anyone that was hesitant to open an online broker because they didn’t want to pay a fee – your excuses are officially expired. 

Companies like Interactive Brokers, Charles Schwab, TD Ameritrade, Ally Invest, and most recently Fidelity investments have announced that they will allow individuals to buy and sell stocks and ETF for free.

Until recently, these online brokers were charging anywhere from $4.95 to $9.99 per trade. Well, those days are now long gone!

Why should you care? If you are new to investing and feel that you might not have enough money to get started or have been hesitant to get the ball rolling because of fees, this is your time! 

Most of these online brokers have no minimum requirements. That means that you can start investing with whatever dollar amount you can afford right now. Also, as mentioned, you also don’t have to worry about having to pay a fee for your stock purchases.

Whatever money you have available can go straight to the investments you want to make. How cool is that?!

The icing on the cake would be that these brokers allow individuals to buy partial shares. The only one I know that allows for that is M1 Finance but hopefully, that’ll become standard as well :).

With investing being so accessible, my #1 recommendation is this: Get educated on how investing works and how to select HIGH-QUALITY investments. The point of putting your hard-earned money in the stock market is to make sure it grows much faster and efficiently than having it just sitting at a bank doing nothing.

For that reason, it is VERY important that you make EDUCATED investing decisions. Not all companies make great investments and it is important that you learn how to identify the trash from the GOLD!

The fact that you can now invest for free is irrelevant if you end up making the wrong investing decisions. Education is KEY!

Not all companies make great investments and it is important that you learn how to identify the trash from the GOLD!

And that’s all folks! What are your thoughts on commission-free investing? If you already have an investing platform, are you now able to invest for free? 

Cheers to Health & Profits!

Mabel

******

Upcoming Courses & Resources:

Stock Market Investing Bootcamp for Beginners –  This is our flagship course where I teach beginners everything they need to know to kick off their investing journey. Over the course of 6 weeks, I explain how to understand the stock market, how to make educated investing decisions, how to open and manage an investment account, and a WHOLE lot more. To be notified when enrollment opens for the next edition, make sure your name is here.  

Understanding Your Investing Options: A STARTER GUIDE for beginner investors. Brand new to investing and not sure where to start with all the options available to you? Invest in this amazing guide!